Your Right to Know

Vista Packaging and Logistics in Columbus is at least a 120-mile drive from the Ohio
Turnpike.

That’s in the range of two hours on the road, even if you’re driving 70 mph — which will be
legal on rural interstates starting July 1.

And yet, Gov. John Kasich chose Vista’s hulking warehouse on the West Side for a ceremonial
signing of a$7.6 billion two-year transportation budget — which approves the leveraging of the
turnpike to generate $3 billion for statewide projects as well as the new speed limit. The reason:
By generating new money for road projects from selling bonds against the turnpike, Kasich said, the
state doesn’t need to raise the gas tax.

“We move more than30 million pieces of goods annually, and it’s a constant challenge for us to
reduce our costs,” said Martha Cahall, CEO of Vista. “The governor’s idea of using the turnpike to
create that revenue for projects instead of raising the tax — I know some people (near the
turnpike) may have had concerns, but it’s good for businesses like us.”

Last year, the Kasich administration discovered a$1.6 billion shortfall for the state’s road
projects. The state’s gas-tax revenues — from an assessment equal to 28 cents a gallon on fuel that
goes mostly toward road projects — are on a decline, falling more than $73 million short last year
of the 2011 level. Projected annual revenue for the next several years is well below the $1.78
billion collected in 2011.

The centerpiece of House Bill 51, which Kasich signed yesterday, is an authorized sale of$1.5
billion in new bonds against the 241-mile turnpike, which Kasich says will generate $3 billion for
road projects. The bill requires that 90 percent of the money from the bonds be spent on road
projects within 75 miles of the road across northern Ohio.

Some lawmakers have expressed concerns that the state might need to raise its gas tax even with
Kasich’s turnpike plan. A provision of the bill creates a task force to examine the state’s
transportation needs and the gas tax.

“What’s happened today — and I know there’s always got to be some doom and gloom cast over
things when good things happen — we’re going to have over 65,000 jobs created once all this gets
done, we’re going to have better infrastructure and right now we see no need for higher taxes on
gasoline, which is really tough on people today,” Kasich said. “The price of gasoline is high, and
it’s great that we’ve been able to avoid that.”

Kasich struck from the bill a provision worth $7.5 million annually to reimburse railroad
companies for road maintenance near railroad tracks.